Following a recapitalization notice, deposit money banks (DMBs) listed on the Nigerian Exchange lost almost 26% of their total market worth.
Following the Central Bank of Nigeria’s (CBN) announcement of the recapitalization of banks with foreign licenses valued at N500 billion, shareholders have begun selling their shares. The capital basis of banks that do not conduct business outside of the nation must be increased to N200 billion.
Following a prior surge that led to repricing, the revelation sparked an aggressive sell off in Tier-1 banks, which made the banking index lose its flavor.
In a letter on Monday, CardinalStone stated, “It is noteworthy that the banking index has lost 25.75% since the CBN announced the recapitalization exercise on March 28, 2024 and is down 14.79% year-to-date.”
The investment firm also hinted that Friday’s close marked the lowest point in the index since 4 December 2023. FBNH has become casualty of bearish play in the stock market as shareholders take the financial services group to court. Zenith Bank market value has declined, while GTCO has also recorded price decline.
Access Plc and UBA have also experienced bearish hands on their respective market valuation – just like their peers in the big bank category.
